Buy now for a tactical rebound setup: price (29.48 pre-market) is deeply oversold (RSI_6 ~6) and sitting near key support, which favors a snap-back move for an impatient buyer.
Options flow is notably call-skewed (Put/Call volume ratio 0.11) alongside low IV percentile, suggesting traders are positioning for upside rather than further breakdown.
Fundamentals and Street view support upside: Q3 FY2025 showed strong profit/EPS acceleration and analysts recently reiterated Buy ratings with $44–$45 targets, implying substantial upside from current levels.
Key levels to watch immediately: 28.46 (S2) as the next downside area if support fails; 32.31 (pivot) then 34.69 (R1) as first upside reclaim zones.
Technical Analysis
Trend/Momentum: Bearish momentum is still present (MACD histogram -0.444 and negatively expanding), indicating the down-move has not fully stabilized yet.
Oversold signal: RSI_6 at ~6.06 is extremely oversold, often consistent with a near-term mean reversion bounce.
Moving averages: Converging MAs suggest the selloff may be maturing, but not a confirmed trend reversal yet.
Support/Resistance map:
Current: 29.48
Support: 29.93 (S1, overhead from current) then 28.46 (S2)
Resistance: 32.31 (Pivot), 34.69 (R1), 36.16 (R2)
Pattern-based odds (provided): ~60% chance of +1.64% next day and +8.6% next week; next month skew slightly negative (-2.18%), reinforcing this as more of a short-term rebound buy than a long-duration momentum entry.
Sentiment read: Open Interest Put/Call ~0.97 is near-neutral, but Volume Put/Call ~0.11 is strongly call-dominant (bullish near-term positioning).
Activity: Today’s options volume (21) is ~20.79x the 30-day average, indicating a sudden spike in attention/positioning.
Volatility: IV 30d ~33.24 vs HV ~34.65 (roughly aligned); IV percentile 25.6 and IV rank 6.94 suggest options are relatively inexpensive versus recent history.
Takeaway: Flow looks more consistent with upside speculation (calls) than defensive put demand, supporting a rebound thesis.
Recent actions: Two notable price-target raises with maintained Buy ratings.
2025-12-30: BTIG raised PT to $44 from $39; kept Buy; added modest value for emerging solutions.
2025-12-11: Jefferies raised PT to $45 from $42; kept Buy; noted selectivity in Internet stocks but still constructive on CARG.
Wall Street pros: Clear upside implied by targets versus current price; thesis supported by improving profitability and margin strength.
Wall Street cons: Broader sector concerns flagged (investment cycles/AI-disintermediation limiting multiple expansion), meaning upside may depend more on execution and earnings delivery than pure multiple re-rating.
Ownership/trading notes (provided): Hedge funds neutral (no significant last-quarter trend); insiders neutral (no significant last-month trend). No recent Congress trading data available.
Wall Street analysts forecast CARG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CARG is 42.38 USD with a low forecast of 40 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast CARG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CARG is 42.38 USD with a low forecast of 40 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 28.440
Low
40
Averages
42.38
High
45
Current: 28.440
Low
40
Averages
42.38
High
45
Needham
Buy
downgrade
$44 -> $37
AI Analysis
2026-02-05
New
Reason
Needham
Price Target
$44 -> $37
AI Analysis
2026-02-05
New
downgrade
Buy
Reason
Needham lowered the firm's price target on CarGurus to $37 from $44 and keeps a Buy rating on the shares. After attending the National Automobile Dealers Association's conference, the analyst contends that the disintermediation risk impacting CarGurus sentiment at this time is overblown, with dealers being counseled to take a conservative approach to AI adoption and to focus their early efforts on local brand marketing and customer engagement tools vs leveraging AI to drive increased sales given typical consumer car shopping behavior, the analyst tells investors in a research note.
BTIG
NULL
to
Buy
maintain
$39 -> $44
2025-12-30
Reason
BTIG
Price Target
$39 -> $44
2025-12-30
maintain
NULL
to
Buy
Reason
BTIG raised the firm's price target on CarGurus to $44 from $39 and keeps a Buy rating on the shares as the firm rolls its base valuation year to FY27. The firm is also adding a "modest" $100M valuation, or roughly $1 per share in value, for CarGurus' emerging solutions business, the analyst tells investors.
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